9911796707
TMI Blogpurchases from urdX X X X Extracts X X X X X X X X Extracts X X X X ..... purchases from urd X X X X Extracts X X X X X X X X Extracts X X X X ..... ay tax under RCM in cash mode on such goods, which can not be used to set off OPT payable. Reply By Shilpi Jain: The Reply: Rcm is applicable only on notified procurements. All procurements from URP is not liable under rcm. Person constructing residential apartments liable under 5%, notified procurements liable under rcm for certain quantum of URP procurements. Reply By YAGAY andSUN: Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Reply: Great question - this relates to the interaction between composition scheme under GST and Reverse Charge Mechanism (RCM) under Section 9(4) of the CGST Act, 2017. Let's break it down: ✅ Can a Composition Dealer Purchase from an Unregistered Dealer (URD)? 👉 Yes, a composition dealer can purchase goods or services from an unregistered supplier. 📌 There is no restr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iction in the law that bars composition taxpayers from procuring from unregistered dealers. ⚖️ Is RCM Applicable on Purchases from Unregistered Dealers (Section 9(4))? ✅ As per current law: RCM under Section 9(4) (i.e., purchase of goods/services from unregistered supplier) is NOT applicable to any person except in cases notified by the Government. 🔹 Current status ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... post-2018 amendment): RCM under Section 9(4) applies only in specific cases notified by the Government (like certain construction-related supplies to promoters). For general B2B URD purchases - RCM is not applicable. 📘 Applicability to Composition Dealer: ✅ So, if a composition dealer purchases goods/services from an unregistered person, RCM under Section 9(4) does not apply, unl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess specifically notified. 🛑 Also note: Composition dealers cannot claim ITC, so even if RCM was applicable, ITC on such RCM would not be available to them. 🔖 Summary: Particulars Composition Dealer Remarks Can buy from URD? ✅ Yes No restriction RCM applicable on URD purchase? ❌ No (Section 9(4) RCM not generally applicable) Unless notified Can claim ITC on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RCM?
❌ No
Composition scheme blocks ITC
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